MANAGEMENT

BUISENESS MANAGEMENT

BUSINESS STRUCTURE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Can a sole trader hire more than 3 employees?
A
Yes
B
No
C
Either A or B
D
None of the above
Explanation: 

Detailed explanation-1: -Yes. You can do it in proprietorship. No need of partnership for this purpose.

Detailed explanation-2: -A sole trader can only be one individual. If two or more individuals agree to join together in business, then they shall form a partnership. The individual is responsible for all decision making. There is little distinction between the business owner and the business.

Detailed explanation-3: -The sole proprietorship business can be started easily by just one person.

Detailed explanation-4: -A sole proprietor can hire employees. There is no limit to the number of workers you can employ. As an employer, you are responsible for all employment administration, recordkeeping, and taxes. You have the same responsibilities as any other employer.

Detailed explanation-5: -Employment: Sole proprietorship can hire employees. This can lead to many of the benefits associated with job creation, such as tax breaks. Also, spouses of the business owner can be employed without having to be formally declared as an employee.

There is 1 question to complete.